43. A couple wishing to purchase their first residence signs an exclusive buyer agency agreement with a real estate licensee who will receive a commission if the couple purchases any property within six months of signing the agreement. The buyer agent devotes a whole week to showing the couple all listed properties in their price range and requested locations. While attending open houses on their own in February, the couple writes an offer on a home with another licensee. After closing, they received a demand letter for commission payment from their exclusive buyer agent. What is the contractual obligation of the couple to the exclusive buyer agent?
Answer: B
The couple must pay because the contract they signed with the exclusive buyer agent obligates them to do so.
The couple is contractually obligated to pay the exclusive buyer agent a commission due to the exclusive buyer agency agreement they signed, which stipulates that the agent earns a commission for any property purchased within the specified period, regardless of whether the agent directly facilitated the purchase.
A) They have no obligation because the exclusive buyer agent did not find the property they bought.
This option is incorrect because the couple's obligation to the exclusive buyer agent is based on the signed agreement rather than the agent’s direct involvement in finding the specific property. The contract specifies that any purchase within the agreement's term incurs a commission obligation.
B) They must pay because the contract they signed with the exclusive buyer agent obligates them to do so.
This option is correct as it reflects the stipulations of the exclusive buyer agency agreement. The couple's commitment to the contract means they owe payment to the buyer agent for any property purchased within six months of signing the agreement.
C) They must pay half of the contract fee to each of the agents.
This option is incorrect because the couple's contractual obligation is specifically to the exclusive buyer agent, not to both agents involved. The terms of the agreement do not allow for splitting the commission based on the involvement of another agent.
D) They have no obligation to pay because they did not use any services of the exclusive buyer agent.
This option is misleading as it suggests that service utilization is a prerequisite for commission payment. The exclusive buyer agency agreement binds the couple to pay the agent regardless of whether they used the agent's services to find the property.
Conclusion
The couple's legal obligation to pay the exclusive buyer agent stems from the exclusive buyer agency agreement, which clearly defines the terms of commission for any property purchase within the designated timeframe. All other options fail to recognize the binding nature of the contract, which ensures the agent is compensated irrespective of their direct involvement in the specific transaction.